Archived News Release Caution: Information may be out of date.
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Release Date: 07/02/2004
Release Number: 04-1158-DAL
Contact Name: Rita Ford
Phone Number: 202.693.8664
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Albuquerque,
New Mexico - The U.S. Department of Labor has obtained a consent
judgment and order removing the owner of Albuquerque-based J.R. Hale
Contracting Company Inc. as fiduciary of the corporation's 401(k) profit
sharing plan. |
"This
action demonstrates the Labor Department's commitment to hold accountable
those responsible for managing the retirement plan and its assets,"
said Roger Hilburn, acting director of the Dallas regional office of the
department's Employee Benefits Security Administration (EBSA), which
investigated the case. |
Under
the judgment, Hale must provide the department with quarterly reports
certifying that the plan has received employee contributions and loan
repayments for the period June 1, 2004, through June 1, 2006, in a timely
manner, and to pay the department $3,3532 in civil penalties. He
also is permanently barred from serving as a fiduciary to any employee
benefits plan covered by the Employee Retirement Income Security Act (ERISA).
The judgment was entered in federal district court in Albuquerque. |
The
judgment resolves a May 29, 2004, lawsuit alleging that the company and
owner Bruce W. Hale violated ERISA. The defendants allegedly failed
to remit employee contributions and participant loan repayments to the
plan at various times between September 1999 and June 2000 in a timely
manner. |
J.R.
Hale is a privately held contracting business specializing in highway,
concrete, sewer and water utilities and subdivision development. As
of December 31, 2002, the 401(k) plan held $2,378,096 in assets and had
103 participants. Hale and J.R. Hale Contracting Company have
returned $17,659 to the plan. |
Employers
with similar problems, who are not yet the subject of an investigation by
EBSA, may be eligible to participate in the department's Voluntary
Fiduciary Correction Program (VFCP). Participation in the VFCP
requires employers to make workers whole but allows them to avoid EBSA
enforcement actions, civil penalties and any applicable excise
taxes. For more information see www.dol.gov/ebsa. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach
the Dallas regional office at 214.767.6831 or through EBSA's toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao
v. Bruce W. Hale)
Civil Action No. 04-CV-00549 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
Archived News Release Caution: Information may be out of date.
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